FASB ratifies new SCF reporting rule

U.S. companies will have to disclose the terms and the size of their supply-chain financing programmes under a new rule from the Financial Accounting Standards Board, which was approved on Wednesday, the Wall Street Journal (WSJ) reports. Previously such disclosure was not required.

Supply chain financing (here referred to as “supplier finance programs” or “reverse factoring”) typically involves a company arranging for a bank or other financial intermediary to pay the company’s suppliers on its behalf.

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